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| Sunday, 22 May 2005 |
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Features |  |
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Loans to supplement income by cultivating idle land by Deepal Warnakulasuriya
Got some space in your garden? Thought about, earning some money off it to supplement your income? It needn't be wishful thinking anymore. With the Aruna Agricultural Credit Scheme of the Ministry of Agriculture you can now make your gardening dreams a reality. The first Perennial Crop Development Project (PCDP) which commenced in 1989 was completed in eight years identifying the project as one of the most important projects to proceed, and subsequently the Second Perennial Crop Development Project (SPCDP) was launched in September 1998. The Agriculture Ministry has drawn up the Aruna Credit scheme to support the development of the country's perennial crop sector through modern technology as well as with guidance, to improve small farms as profitable livelihoods. Both PCDPs have facilitated interested entrepreneurs with low rate concessionary loans to establish commercial farms, post harvest processing industries, nurseries and marketing facilities.
The Aruna credit scheme has also been drafted by agricultural authorities with a long term pay back period to facilitate those growing perennial crops. An entrepreneur can apply for a loan ranging from Rs 25,000 to Rs 20 million on an annual interest rate of 10.5 per cent. A grace period of one to four years, where only the interest is payable and a 10 year loan-repayable period has been provided to settle the loan. Kandy, Matale, Nuwara Eliya, Galle, Matara, Hambantota, Monaragala, Badulla, Gampaha, Kalutara, Colombo, Puttalam, Kurunegala, Anuradhapura, Polonnaruwa, Ratnapura and Kegalle are the selected districts for the PCD projects. Aruna credit scheme is very flexible and an entrepreneur can apply through any government or private bank including Kandurata Development Bank and Ruhuna Development Bank. The Asian Development Bank (ADB) and the Central Bank of Sri Lanka (CBSL) are sponsoring the project's credit scheme for three groups of perennial crops in 17 districts. These include fruits, spices and flowers & foliage. Fruits like pineapple, banana, mango, rambutan, citrus, passion fruit and cashew come under the first category and pepper, cinnamon, coffee, cocoa, cardamom, vanilla etc come under the second category as spices. The third category comprises orchids, roses, carnation and foliage plants. According to Project Director Dr. G. A. C. de Silva the `Aruna' Agricultural Credit Scheme is a boon to many entrepreneurs. "By the end of January this year, we have approved over 5,550 loan applications and also released funds for almost 5,400 entrepreneurs. The most interesting fact of the project is that the highest number of loans has been approved to the Hambantota district. "The amount is 1,694 while the second highest goes to the Kurunegala district with 726 interested applicants. From Nuwara Eliya, Monaragala, Badulla, and Kegalle districts, we have received below 100 applications. The loan settlement process is also more satisfactory than the first project", he said. The response has also been satisfactory in the Western Province with almost 1000 (Colombo 107, Kalutara 131 and Gampaha 726) project reports. The Project Director also said that by the end of 2004, the project had provided funds to cultivate crops and spices in 15,500 acres of land. The project had assisted to develop over 4000 acres for banana cultivation, another 4000 acres with pineapple, over 2000 acres each for pepper and cinnamon. The PCD project had also approved loans to grow papaya, rambutan, mango, grapes, coffee, betel and cloves. Silva further added that they were not just approving loans to entrepreneurs but also had training sessions, supervision on personal projects. Our training series ranges from digging holes, pest and disease control to preparation and application of organic manure, weed control and fertiliser application. We work in fields at a time as entrepreneurs and next time we may be at a bank or somewhere else educating the relevant persons on the project", Silva added. He also stressed that approval of loans for the second project had been
completed and that they were in the supervision period till December 31. The
Sunday Observer reliably learns that the UPFA Government has planned a new
project and had even appointed a committee to look into the matter. |
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